Transaction Overview
George Smith Partners arranged a $4.3 million preferred-equity commitment from AXCS Capital for the acquisition and repositioning of a 660-unit, 76,370-net-rentable-square-foot, Class A self-storage facility in Livonia, Michigan. The property also includes 92 covered RV/vehicle spaces totaling 43,392 square feet and 50 uncovered vehicle spaces.
The facility had underperformed while self-managed by a local operator, creating an opportunity to increase occupancy and revenue through institutional pricing, marketing, and lead-conversion strategies. The sponsor's business plan includes transitioning the facility to institutional third-party management and constructing a 17,100-square-foot, 72-unit non-climate-controlled drive-up expansion on a portion of the property's excess parking area.
The preferred equity was structured behind a $13.75 million senior bridge loan, bringing cumulative leverage to approximately 83.5% of the project's $21.6 million total cost.
